Dow profit, sales up in third quarter

The Dow Chemical Co. increased its third-quarter earnings more than 50 percent, with sales increasing in each segment and volume growth outside the U.S. and Western Europe.

Dow reported today that from July through September the company earned $815 million, or 69 cents per share, compared with $512 million, or 45 cents per share, in the same period last year. Excluding certain items, earnings were 62 cents per share, compared with 54 cents per share last year.

Sales of $15.1 billion were up 17 percent compared to the same quarter last year, with emerging geographies setting a new quarterly record of $5 billion. Volume grew in emerging geographies, but declined in the U.S. and Western Europe.

"Dow delivered broad-based sales gains and significant earnings growth this quarter, reflecting the strength of our transformed business portfolio," Dow Chairman and CEO Andrew Liveris said. "Our diversified geographic presence was also on display, as our investments in emerging regions enabled us to capitalize on growth where it is happening most rapidly, even as developed regions paused in their economic recovery."

The company said price increases more than offset a $1.7 billion increase in purchased feedstock and energy costs for the company, and the company reduced its debt by nearly $500 million in the quarter.

Equity earnings were $375 million, or $289 million excluding certain items, representing a 15 percent increase from the same period the year before.

The company set a quarterly record for earnings before interest, taxes, depreciation and amortization at $2.1 billion, pushing the year-to-date figure to $6.8 billion. Liveris previously committed the company to a near-term goal of $10 billion annually.

The company sees ongoing volatility in the pace of global economic recovery, Liveris said. He said concerns in developed regions continue to restrain consumer spending and business investment.

"However, in emerging regions, growth in the middle class continues to drive demand, particularly as it pertains to infrastructure and urbanization," he said. "And we continue to see bright spots in recession-resistant sectors such as agriculture, food packaging, energy and water -- markets where Dow commands leadership positions."

Liveris said the company showed its flexibility in the quarter.

"Dow is an enterprise that is built for times like these -- and is built to grow," he said.